04 cases that financial organizations must apply the measures to identify clients in Vietnam

According to Article 8 of the Law on prevention of money laundering 2012 of Vietnam, financial organizations must apply the measures to identify clients in the following cases:

- The clients open accounts or set up transactions with the financial organizations;

- The clients who make infrequent transactions of high value or carry out the transaction of electronic money transfer but lack the information about the name, address, account number of the originator;

- There is doubt of transaction or the parties concerned in transactions are related to the money laundering;

- There are doubts about the accuracy or completeness of the Clients identification information previously collected.

Besides, organizations and individuals doing business in the relevant non-financial sectors must apply the measures to identify Clients in the following cases:

- Organizations and individuals doing business in sectors specified in clause 4, Article 4 of this Law shall take all measures to identify Clients for the Clients of high value transactions;

- Organizations and individuals doing business in sectors prescribed in Clause 4, Article 4 of this Law shall apply measures to identify Clients when providing the services of brokerage, purchase, sale and management of real estate for Clients;

- Organizations and individuals doing business in sectors prescribed at Point c, Clause 4, Article 4 of this Law shall apply the measures to identify Clients in case the Clients perform the transactions of purchase and sale of precious metals and gems of great value in cash;

- Organizations and individuals doing business in sectors prescribed at Point d, Clause 4, Article 4 of this Law shall apply measures to identify Clients when they, on behalf of Clients, prepare the conditions for conducting the transactions to transfer the land use right, house ownership, management of money and securities or other assets of the Clients; managing the Clients’ accounts at banks, securities companies; administrating and and managing the operation of the Clients Companies, and participating in the activities of purchase and sale of business organizations;

- The service supply organizations specified at Point d, Clause 4, Article 4 of this Law shall apply measures to identify Clients when providing services of company establishment; supplying director and secretary of enterprises; supplying registration office, address or place of business; supplying services of company representative, investment trust and the services of representative supply for shareholders.

View more details at the Law on prevention of money laundering 2012 of Vietnam, effective from January 01, 2013.

Ty Na

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